Correlation Between HUAQIN TECHNOLOGY and Beijing Shunxin
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Beijing Shunxin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUAQIN TECHNOLOGY with a short position of Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Beijing Shunxin.
Diversification Opportunities for HUAQIN TECHNOLOGY and Beijing Shunxin
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUAQIN and Beijing is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri and HUAQIN TECHNOLOGY is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUAQIN TECHNOLOGY LTD are associated (or correlated) with Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Beijing Shunxin go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Beijing Shunxin
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.06 times more return on investment than Beijing Shunxin. However, HUAQIN TECHNOLOGY is 1.06 times more volatile than Beijing Shunxin Agriculture. It trades about 0.07 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about 0.02 per unit of risk. If you would invest 5,183 in HUAQIN TECHNOLOGY LTD on October 12, 2024 and sell it today you would earn a total of 1,855 from holding HUAQIN TECHNOLOGY LTD or generate 35.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Beijing Shunxin Agri |
HUAQIN TECHNOLOGY and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Beijing Shunxin
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Beijing Shunxin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Emdoor Information Co | HUAQIN TECHNOLOGY vs. Guodian Nanjing Automation | HUAQIN TECHNOLOGY vs. Soyea Technology Co |
| Beijing Shunxin vs. Sunny Loan Top | Beijing Shunxin vs. HUAQIN TECHNOLOGY LTD | Beijing Shunxin vs. Changjiang Publishing Media | Beijing Shunxin vs. Thinkingdom Media Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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